BILL ANALYSIS
SB 747
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Date of Hearing: August 19, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 747 (Romero) - As Amended: July 9, 2009
Policy Committee: Education
Vote:10-0
Higher Education
9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill establishes a pilot pre-apprentice aerospace machining
program (pilot program), administered by the California Labor
and Workforce Development Agency (CLWDA), to provide career
technical education (CTE) to high school pupils until January 1,
2015. Specifically, this bill:
1)Requires the curriculum for the pilot program to include
specified green technologies in aerospace manufacturing,
including (a) the use of computers to assist in metalworking;
(b) training in the machining of lighter, strategic metals;
and (c) training in the fabrication of more energy-efficient
aircraft ventilation.
2)Requires the program to be funded through a combination of
private, nonprofit by public funds, including federal funds
awarded for community-based job training grants the Department
of Labor and federal American Recovery and Reinvestment Act
(ARRA) funds.
3)Establishes the Machinist Fund, administered by CLWDA, and
requires all funds for the purposes of the pilot program to be
deposited in it. This measure also specifies that
implementation of the pilot program is contingent upon the
receipt of federal funding.
4)Specifies that nothing in this bill be construed to impose a
mandate on local workforce investment boards with regard to
how to spend Workforce Investment Act (WIA) funds, including
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funds made available via ARRA.
5)Requires California community colleges (CCCs) to apply for
competitively awarded grants based on specified criteria
related to their ability to address local CTE and labor market
needs.
FISCAL EFFECT
1)GF/98 costs of approximately $1.7 million to the CCCs to
implement this pilot program and develop curriculum, as
specified. This bill requires the CCCs to apply for grant
funding and establishes a new fund for this purpose. The bill
requires implementation of the pilot program to be contingent
upon federal funds. However, it does not specify grant
amounts or a source of federal funds (see comment #2 below).
2)GF administrative cost pressure of $150,000 to the Chancellor
of the CCC to complete an evaluation of the pilot program.
This bill requires community-based job training grant award
recipients to reserve 10% of funds received for this purpose.
However, as noted below, these grants have been awarded
directly by the federal government and for purposes other than
the pilot program.
SUMMARY CONTINUED
6)Requires the Chancellor's Office of the CCC system to develop
pre-apprenticeship curriculum in aerospace and machining
technology and requires this curriculum to result in the
issuance of a certificate of completion that meets the
National Institute of Metalworking Skills (NIMS) standard, as
specified. This bill further requires CCCs to administer,
upon completion of the curriculum, a NIMS examination to
students, which will result in the issuance of a NIMS
certificate (if passed).
7)Requires the community-based job training grant award
recipients to reserve 10% of grant funds for an evaluation
component. This measure also requires each CC that receives a
grant to complete an evaluation of the pilot program and
submit it to the CCC Chancellor's office, as specified. This
bill requires the CCC Chancellor's office to compile this
information and submit it to the legislature by December 1,
2013.
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COMMENTS
1)Purpose . According to the author, "Currently there is a
crisis in our public education system and in the private
sector. California has a drop-out rate of 21%, due partly to
curriculum that does not engage all students. The crisis in
the private sector is partly driven by the current economic
recession, the worst since the Great Depression. In the
aerospace industry, there is an impending labor shortage of
skilled machinists. As a generation of baby boomers nears
retirement, employers confront a shortage of new workers to
replace them. This has significant potential to damage
California's economy, with thousands of aerospace companies
and related entities in Southern California alone."
This bill establishes a pilot pre-apprentice aerospace
machining program, administered by the CLWDA, to provide CTE
to high school pupils until January 1, 2015.
2)Are federal funds available to implement this measure ? This
bill requires the pilot program to be funded through a
combination of private, nonprofit and public funds, including
federal funds awarded for community-based job training grants
from the U.S. Department of Labor and federal ARRA funds.
Likewise, this measure specifies that implementation of the
pilot program is contingent upon the receipt of federal
funding.
a) Community-based job training grants. In January 2009,
the U.S. Department of Labor awarded $123 million to
individual community and technical colleges, community
college districts, state community college systems, and
One-Stop Career Centers for the purpose of building the
capacity of community colleges to train individuals for
careers in high-growth/high-demand industries.
Six state local agencies (one county, four CCC districts,
and one CCC campus) received approximately $12.7 million
(10%) in grant funding directly from the federal government
for projects primarily associated with the energy,
construction, and transportation sectors. This bill
proposes to utilize these grant funds for the
pre-apprentice aerospace machining pilot program. However,
it is unclear how much of the grant funding awarded is
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available for this purpose.
3)ARRA funds . In February 2009, the federal government passed
the ARRA, which allocated approximately $100 billion
nationwide for education programs with the purpose of
stimulating the economy. Of this amount, approximately $3.7
billion is allocated for WIA.
Of the $3.7 billion in WIA funding, California is expected to
receive approximately $493.6 million for existing programs
related to dislocated workers, youth, and adults.
Approximately 85% of this funding will be allocated to local
WIA boards under existing federal formulas. The remaining 15%
is available for use at the governor's discretion, under the
state WIA board. The governor has indicated his desire to
allocate this funding for the creation of green jobs. It is
unclear how much of the $493.6 million would be available for
the pre-apprentice aerospace machining pilot program.
In addition to the formula driven funding, approximately $75
million is available for competitive grants for worker
training and placement in high growth and emerging industry
sectors, with emphasis on training in energy efficiency and
renewable energy industries. To date, the state has not
received any of this funding.
4)Single Industry Carve Out. A large portion of federal funding
is allocated directly to local entities in the form of grants
or formula funds to local WIA boards for specified purposes.
The state WIA board, which includes industry, government, and
legislative members, will determine the distribution of ARRA
funding available for state activities. The committee may
wish to consider the need to establish a specific pilot
program in statute that will carve out funding for one
specific industry when there are mechanisms in place to
determine the use of these funds.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081
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